North Carolina probes how healthcare mergers affect costs and patient care

North Carolina's State Health Plan will examine the effects of healthcare consolidation this summer. The study aims to assess how mergers and acquisitions impact costs, patient health and the wider system. Concerns have grown as private firms increasingly take over hospitals and medical practices across the U.S.

Private equity firms now control 30% of all for-profit hospitals in the country. They also own thousands of medical practices, raising questions about profit-driven care. Critics argue that these firms often prioritise financial returns over patient outcomes, potentially harming the quality of medical services.

The consolidation trend has accelerated in recent years. In 2024, 47% of physicians were employed by or affiliated with hospitals, compared to under 30% in 2012. This shift has led to higher spending and prices, though the effects on care quality and access remain unclear.

North Carolina has already taken steps to manage costs. The state partnered with Lantern to encourage members to choose affordable, high-quality providers. The upcoming study will focus specifically on how consolidation affects the State Health Plan's budget and the health of its members.

The findings could shape future policies on healthcare mergers in North Carolina. With nearly half of physicians now tied to larger systems, the study may reveal whether consolidation improves efficiency or simply drives up costs. Results are expected later this year.